Which of the following is correct with respect to Private Letter Rulings?

A) Issued when a taxpayer wants to know the tax treatment of a specific tax situation.
B) Can be relied upon by all taxpayers in a similar tax situation.
C) Provides tax authority only to the taxpayer to whom it is issued.
D) Both issued when a taxpayer wants to know the tax treatment of a specific tax situation and provides tax authority only to the taxpayer to whom it is issued.

Question

Payton Malone · Accepted Answer

Final Answer : D, Explanation :  Private Letter Rulings are issued when a taxpayer wants to know the tax treatment of a specific tax situation. However, they provide tax authority only to the taxpayer to whom it is issued and cannot be relied upon by other taxpayers in a similar situation. Therefore, the correct answer is D, as it includes both aspects.

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